The Czech Republic is seeking to make the system of emission allowances from transport and heating of buildings, referred to as ETS 2, voluntary for EU member states, Czech Finance Minister Zbynek Stanjura (ODS) said yesterday on a discussion show on Czech TV.
He said he does not see the abolition of the entire system as realistic, as some EU countries remain committed to the system, which is designed to reduce carbon pollution and raise money for environmental measures.
Last week, the Czech Republic won the support of 17 other countries for the reform of the ETS 2 system. The draft revision envisages, for example, setting a maximum price for the allowances and modifying the trading system.
Stanjura stressed that he considered this modification to be only the first step, and that the Czech Republic would like to continue to loosen the system.
“Capping is the first step. Abolition is probably not realistic, so we will promote the idea of voluntary take-up,” said Stanjura, adding that the Czech Republic would try to find enough countries in the EU to support the idea of voluntary allowances.
Pavel Belobradek, deputy leader of the junior coalition Christian Democrats (KDU-CSL), noted that the complete abolition of the ETS 2 system would require the unanimous consent of EU member states, while some EU states want the transport and heating allowances to work as originally planned. The allowances of carbon credits are designed to contribute to reducing carbon dioxide (CO2) emissions, and the system is to be operational from 2027.
Chamber of Deputies deputy speaker Karel Havlicek (ANO) said he doubted that setting a maximum price for allowances would work. He pointed out that allowances were traded, making it difficult to regulate the price. He said it was necessary to look for partners in the EU who would support the complete abolition of the system.
Experts have suggested that ETS 2 could make fuel and some types of heating more expensive. At the same time, the proceeds from the system are supposed to finance social programmes that would support decarbonisation measures for households.
The EU already runs an ETS system that applies to power plants and greenhouse gas emitting industries. Each credit allows one tonne of CO2 or an equivalent amount of another gas to be emitted into the atmosphere. EU member states are supposed to use the proceeds from their sale for climate protection measures.
